JP Morgan Chase Identifies Cryptocurrencies Among Business ThreatsMar 01, 2018 at 10:45
JP Morgan Chase, the largest bank in the United States, has acknowledged the possibility of cryptocurrencies and blockchain technology to disrupt banks.
“…Both financial institutions and their non-banking competitors face the risk that payment processing and other services could be disrupted by technologies, such as cryptocurrencies, that require no intermediation… New technologies have required and could require JPMorgan Chase to spend more to modify or adapt its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies,” the bank wrote in its annual report that was filed with the US Securities and Exchange Commission.
The document was signed by JPMorgan chief executive officer, Jamie Dimon, a known Bitcoin skeptic who branded the cryptocurrency as “fraud” and once threatened to fire any employees caught trading virtual assets.
The bank which manages about $2.53 trillion in assets is already the third major financial institution to cite cryptocurrencies as a business risk on their 2017 annual reports.
Last week, Bank of America, the second largest US bank also admitted that cryptocurrencies and other blockchain-based financial services is a threat to its business model.
Both JPMorgan and Bank of America noted that increasing adoption of cryptocurrencies could force them to make significant expenditures to ensure their products and services remain competitive.
Earlier, Goldman Sachs with $917 billion in assets and ranks fifth among US institutions also identified cryptocurrency as a business risk.
The firm mentioned that its primary concern is its investment in startups that operate in the nascent cryptoasset space, such as Circle, which owns one of the most profitable cryptocurrency trading exchange, Poloniex.